Sharia index tracker versus global (ethical) equity in workplace pension (USS)

FIREmenow

BlackKnightMonty said:

You can get longer term projections on the NEST Sharia Fund here;

https://markets.ft.com/data/funds/tearsheet/holdings?s=GB00BFZNFH05:GBP

and here:

https://www.trustnet.com/factsheets/p/klls/nest-sharia-pn

Thanks, what I had in mind was backtesting how a portfolio of the top 100 global large caps would have performed over multiple 20 year periods in history, to come somewhere close to the Sharia fund's makeup. But I think that is beyond me and needs software subscriptions!

Cornish_mum

Many thanks for the very helpful responses. Much appreciated CM

BlackKnightMonty

FIREmenow said:

BlackKnightMonty said:

You can get longer term projections on the NEST Sharia Fund here;

https://markets.ft.com/data/funds/tearsheet/holdings?s=GB00BFZNFH05:GBP

and here:

https://www.trustnet.com/factsheets/p/klls/nest-sharia-pn

Thanks, what I had in mind was backtesting how a portfolio of the top 100 global large caps would have performed over multiple 20 year periods in history, to come somewhere close to the Sharia fund's makeup. But I think that is beyond me and needs software subscriptions!

The FT link takes you back greater than ten years if the data is there. But you have to fiddle with the charts and choose ‘all’ years.

20 years ago was a very long time ago. The world is a very different place. Do you need such a lengthy perspective on a fund?

FIREmenow

Thanks, I've got over 20 years until retirement sadly! Back testing gives an idea of how many times in the past a certain portfolio would have 'succeeded/failed' but as you say, it would be for a more general portfolio composition not individual funds. So top 100 largest global companies comes closest to the Sharia fund's composition.

BlackKnightMonty

Sounds sensible. Buying ‘in the dip’ if you can time it right. Good luck!

swindiff

@cornishmum

Some of the funds are only available using the "Lifestyle" option

2nd_time_buyer

Whilst there are no management fees whilst in the USS, it is not clear whether there are still fees for buying and selling funds. These are from the investment builder guide which suggest there are:



Which might be something to keep in mind if switching around a lot. 

Cornish_mum

Thank you,

I wanted to invest partly in ethical growth and partly in ethical equity. As I wasn’t happy with the amount of equity in the ethical growth but did also want the diversification of other asset classes. Currently I have fudged it by sending my normal contribution to one and my additional to the other but after April with the rise of the salary cap that won’t work anymore.

 Thanks again all CM

FIREmenow

2nd_time_buyer said:

Whilst there are no management fees whilst in the USS, it is not clear whether there are still fees for buying and selling funds. These are from the investment builder guide which suggest there are:

Which might be something to keep in mind if switching around a lot. 

Hi, it is annoying that they don't make dealing costs clear. From the annual report it seems they are not charged for non-transfers.

If it's helpful for anyone, the current fee for each fund is shown on the top right of each fund's detail page in the quarterly report: 
Fund fees fully subsidised at the moment for non-transfers. 

NickBFS

IIRC, transaction costs are distinguished in USS literature from fees and charged on buy/sell operations even though fees themselves are subsidised by the employer and not charged (outside transfers)